which means that many taxpayers right now are rushing to make sure they take advantage of any deductions they have today but will lose next week. to take us through how it all will work, we welcome now laura davison. welcome back to the program. on the individual side, there are reports, and i must say, i'm in new york resident and i'm looking at it how you can pay some of your taxes next year because you lose the deduction next year. laura: what the new law does is that it limits the state local taxes that you can do. to $10,000. if you live in an expensive state like new york where you have a property tax bill and your state income tax bill could exceed $20,000 or $30,000, if you prepay those now in states that are allowing you to do that, you can get that full deduction and tax break. that's why you saw governor cuomo say you can prepay that. take a bigger deduction. this is really democrats that are leading some of these states and kind of sticking it to congressional republicans, saying we will help out our people even for one year. david: you said the crucial thing -- and those states that let you do it. do all states let you do it or special dispensation? laura: it depends state by state and county by county. some states have had this where you can go ahead and prepay and some are signing executive orders to allow this to happen. it really depends on exactly where you live. david: what about the corporate side? you have the deduction that may not go away, but it's not worth as much next year because you will have not as much high taxes. laura: that is the counterargument to tax rates going down from 35% all the way to 21%. if you had a tax benefit you are planning to use next year, suddenly it's not worth as much because you are deducting it off a lower base essentially. that's why we're seeing a lot of announcements this week as companies prepare their year-end financial statements, saying we are going to have to take a large charge and write-down of all these tax benefits we thought we would have. for some companies, credit suisse was $2.3 billion, so it's not chump change as people react the new law. david: it's not equally distributed for individuals or corporations. let's talk about individuals. we have a map to show those salt deductions. it is pretty heavily concentrated in the northeast and out in california, which just happened to be the credit states that tended not to vote for president trump y. is that coincidence? laura: partially it's coincidence, but partially not. if i'm from alabama or mississippi or kansas, we can get rid of this deduction and it does not hurt our people because most of the residents in those states pay less than $10,000. that is why nissan republicans from california and new york state say we're not going to vote for this bill. it still made it through, but that's where a lot of opposition was particularly in the house of representatives. david: on the corporate side, which sectors stand to benefit more or less from this tax break we will get next year? the biggest you see benefit is in industries that have typically paid higher than average effective tax rates . the tax rate was 35%, but no one really pays that because of credits and deductions. . retail stands to be a big winner because they have a higher tax rate of 33% all the way down to 21% so it will be a huge change for them. if consumers have more money in their pockets, they will go out and spend more. another big winner is banks because they pay a high effective tax rate and they are expecting to see a lot of low growth expansion as people are looking to grow their business and take out more loans. it's a double handed when he there -- whammy there. are there any parts of the economy that could benefit? i think of charitable donations that you might want to bring it forward to this are there any pf the year's you will get a bigger bang for your buck. laura: charities are actually really worried about tax reform. , the bill expands standard deduction of to $24,000. whatthat means is that people will take the standard deduction and not itemize, meeting there will not be a benefit for donating to charities. charities are really urging people to go head and make those donations before the end of the year this year because they're worried they will see a dip because there is not a tax benefit for people with less incentive to give next year. david: you studied this could what do you think are the biggest declines coming down the turnpike? there's a complicated tax cut. what are people focused on that they may not be? laura: the big unknown is what is going to happen internationally. the bill lays out what it wants to do and out soft to treasury to go ahead and implement this law and write all the regulations for it. that's what a lot of the loopholes could creep in and they find out the law was not written as tightly as they hoped. suddenly there is deemed repatriation and there are companies that have cash overseas. at least they have to pay tax on it. bill loses aan the lot more money than they predicted, which means the deficit would grow beyond that $1.5 trillion to lawmakers have laid out. david: laura davison, thank you so bill much coming today from washington. one of the industry's wrestling with the new tax laws is public or traded partnerships. eon black, ceo of apollo global management, sorting out whether he wants to remain a partnership or become a corporation, which would increase this tax is somewhat but give him access to mutual fund investors. maggie collins, we welcome her now. this is a little bit complicated, but explain the calculus. it's not just leon black. it's other public or traded partnerships. peggy: lots of businesses are traded us partnerships. the corporate tax rate dropped from a top 35% to 21%. that is a big drop. previous to that pass through businesses were basically having their income pass through been taxed at even capital gains rate if it was carried interest or the income tax rate. and they were able to structure that in a way that they thought was most beneficial to them. now because there is a closing of rates on the corporate tax, there is trying to do the calculus of like wait a second, should we convert to a corporation and pay the lower corporate tax rate and then potentially get access to index funds, which is a huge pool of money and shareholders? david: explain that part critically. how important is it to get access to mutual funds? much: it's huge because so of the money is following index funds and following them right into 401(k) plans, which is a huge treasure trove of money that workers are contributing to. or more countries are using index funds and offering them to their workers as an option because of the low fees. as a partnership, lots of mutual fund and asset managers choose not to add them into very mutual funds or index funds because it's just complicated. lots of partnerships deliver k wants to shareholders. shareholders are not sure when they get them. sometimes they come out in february and march. they are headache for accounts managers. for a while, it has been too complicated to add the. if you ship to a corporation, someone like leon black might get more access to this huge pool of shareholders. david: managers. i've actually seen this work this way. part of the cost of being in the cost andip is the tax the tax-preparation cost because your account is waiting for the k-1 and you don't know what your taxes are. if you could simple find that and know where you stand at the end of the year for tax purposes coming could save a lot of money and just administered of costs. peggy: that's a good point. i can tell you from talking to accounts in the last week or so that they are really synonymy -- tsunamid by these changes. whether you structure private or public next year is one of the biggest questions out there. companies like apollo are racing to figure it out because the sooner you decide, the more benefit you may have for next year. david: this may be one part of the tax overhaul that does lead to certification. if you did go over the corporate side, it's more simple to do. president trump promised simplification of taxes and it may make them more competitive as they compete for those funds. peggy: that's right. it is simpler for sure. one other thing that people are trying to consider is the fact that carried interest really did survive in the bill. david: i think we have a slide that we can put up. it was a dispute supposedly between mnuchin and cohn on the other hand. it came out on the right side with the mnuchin plan of 23.8% in three years. waspeggy: the one change that you had to hold the securities for three years instead of one, but for a lot of private equity funds, they're doing it already because her holding time on average is five to seven years. the fact that carried interest survived at all was a big win for the industry because president trump had basically campaigned on killing carried interest for hedge fund managers. private equity managers really do benefit from carried interest or en masse than hedge fund managers do. david: do you have any reason to believe the people who are architects of this new statute in the hill or the white house understood this aspect of it, that they might be calling leon black to switch from a partnership to a corporation? peggy: i do think it was a possibility, i do. in the hill or the white house understood this aspect ofyou haf accountants say maybe we should do the calculus and switch. one thing to note is that when you switch, in order to get the benefit, there have been laws of the code for a long time that does not make it very easy to switcheroo for lack of a better word, to switch to a corporation and quickly change your mind and get back to a partnership and get the benefit. it is a situation for when people once they make the decision, they have to hold onto that decision for several years in most cases in order to get the benefit. david: we were talking about the state local tax reduction. you've got to get it done by december 31. is that true or can it wait until next year and get most of the benefits? peggy: mostly accounts i talked to are not thinking of advising any clients to do it before year end. it is way too complicated. the calculation is to couplio complicated. it is important to make sure you don't bump yourself into a higher tax bracket or into the amt by paying state and local early. definitely could be a benefit come up to be sure if you are on the edge that you do not pump yourself into a higher federal tax rate in the process. david: very good personal income tax advice. thanks to peggy collins, bloomberg's team leader for u.s. investing. let's get a check on where markets stand. taylor riggs is here with the latest. taylor: i'm going to call the markets here green but mostly unchanged. i know what you are interested in as it relates to tax reform. it was the russell 2000. at one point this was outperforming 4/10 of 1% and hourly mostly unchanged. on the macro level, things don't look that exciting, but there are individual stocks moving and that is a better story. first, let's talk about tesla, often now about 2%. cut theafter analyst forecast for deliveries in the fourth quarter for model three to about 5000 from 15,000. the specific numbers will be released next week, but in the meantime, tesla falling today. as theys a good story got format -- amazon is a good story as they got more prime echo dot washeir the best seller. my mother walked around all christmas telling alexa, tell me a jet. i'm more familiar with echo it i want to admit. speaking of amazon and billion years, let's wrap it up at g #btv and 78, the world's richest added $1 trillion to their fortunes in 2017, four times the games that we saw last year. the bloomberg billionaires index now up 23%. david: coming up, with several vacancies remaining on the federal reserve board, we go through what we know about who may help make up the new face of the fed in 2018. live from new york, this is bloomberg. ♪ david: this is "bloomberg markets: balance of power." i'm david westin. from bloomberg's first word news, we turn now to emma chandra. emma: president trump is planning a meeting with top republicans to draw up a game plan for the 20 18th legislative agenda early in the new european -- in the new year. the present will host mitch mcconnell and paul ryan i can david during the first weekend of january coul. both lawmakers have confirmed they will attend. in jerusalem, plans are underway for new train station near the west wall and it could be named for president trump. israel's transportation manager says it could be a thank you to present trump for recognizing jerusalem as israel's capital. amending thers national constitution for the first time since 2004. according to china's official news agency, the decision was made today at a politburo meeting led by president is usinjingping. vladimir putin has submitted the nomination papers required for him to run for lee election -- reelection as an independent. it comes a day after a group of supporters signed up to support his candidacy. russia requires endorsements. with an approval rating of about 80% heading toward the march election, he is seen as likely to win. news 24 hours a day powered by 2700 journalists and analysts in more than 120 countries, i'm emma chandra. this is bloomberg. left: with just a few days out in 2017, the fed is back in our focus. the white house has interviewed lindsay.laire t end let's bring in peter coy. welcome back and good to have you here. we have laid lindsay and possibly rich clarida. we did not have jay powell confirmed yet although it's likely. what does this tell us of where the fed is headed? peter: it strikes me that donald trump is taking a very mainstream centrist approach to monetary policy and bank regulation. it is conservative. it's republican, but it's kind of mainstream as opposed to some of his picks for the cabinet they were kind of extreme and teardown the institution types. i don't need to go on and on with all the different cabinets. with the fed, he seems to say kind of continuity. is picking people who served under george h.w. bush and george w. bush in different capacities. larry lindsey was on the federal reserve board of governors before. david: let's talk about monetary policy because there is the regulatory side that people say is changing anyway, but let's talk about monetary policy. what does it say about rates and what does it say about balance sheet? he was particularly critical of some of the acquisitions of certain instruments. i would guess that it's not going to be any dramatic change. the federal reserve has already begun to run off the balance sheet it had accumulated. that will continue. david: might they speeded up? they are probably going to do what janet yellen did, which is be data dependent. if it looks like they can afford to speed it up, they would probably prefer to, but they're not going to if they saw long rates spiking upward because they were dumping a lot of securities onto the market there was no appetite for. that's not really what we want here. they are not going to go overboard on this. david: the same thing on the rate side. the dot plot suggests three rate hikes next year. do you expect the same sort of course that janet yellen took? peter: i think it's going to be data dependent. the big unknown is what's going to happen with the economy. continue on this trajectory of quite strong economic growth combined with low inflation, we are still in that sort of conundrum where the inflation data is telling you to keep rates low and the job growth data is telling you you should raise rates. you're probably not going to go extreme in either direction. david: you call it conundrum, but if you have solid growth and low inflation, that's a nice fed to run. you do not have to do very much with that said. peter: jay powell is a very enviable position. david: things like that don't continue forever. if things get rocky, what will happen when you lose janet yellen and stanley fischer potentially? there's a lot of intellectual capital. peter: i wrote a piece that made exactly that point and i talked to diane swap who said live institutional knowledge is going away. that the a calculation collective experience on the federal reserve board would be only 10 years, which would be the lowest since the late 1980's that. bringing in somebody like larry lindsey, who has had experience ida, who hasor clar been watching the fed for a long time, or good friend, who is a close watcher. it could be very positive. david: houston watching that. peter: it's different to be on the board making decisions for academically observing it from afar. david:it could be very positive. david: what will you be looking at most intently when it comes to the fed either in the personnel or the actions and statements? peter: you always watch for not only what the board of governors does but the presence of the regional banks. some of the most interesting action is there. you have the most dispersion of views there. you have somebody like the minneapolis fed president. he is kind of over on the side of come on, let's not be raising rates now. then you have esther george who is gung ho and we need to be raising rates. it's good to have all those voices around the table. you don't want to have a narrow kind of monoculture of use. david: it's up to jay powell to her those cats as it were. thank you very much to peter coy. still ahead, 2017 was the year when fake news entered the national vocabulary. we take back at a look at news from everyone for the president on down objected to. live from new york, this is bloomberg. ♪ david: so-called fake news made big news and 2017. sarah frier took a look at the greatest hits and so-called fake news for the year. is the year we realized how quick and easy spreading misinformation on -- social media is. before the u.s. presence election, fake news was a get rich quick scheme to cash in on online advertising, but this year we learned it's also a tool to disrupt democracy. agencymlin backed reached over 150 million americans on facebook with inflammatory posts intended to stir conflict over issues like race and religion. this was done with 80,000 posts boosted by $100,000 in ad spending. >> these ads are just the tip of a very large iceberg. in google,esulted facebook, and twitter all testifying in hours of congressional hearings about russia's tactics and how they can try to stop them. but it's not limited to the u.s.. the spread of fake news became a global issue in 2017. france and germany successfully fighting the scourge of their own elections. other governments are using facebook as a tool to spread propaganda. a genocide in myanmar an attack in the philippines on a local news organization and much more. just what can big tech due to rain this in? facebook is hiring thousands of people to sift through all that content, but critics also worry about social media companies taking too many liberties and going too far with their censorship. tilde said they shut down thousands of accounts and are taking steps to get tougher on extremists while investigating further. no matter what the sites to do, one thing is for sure. fake news is going to get harder to stop. facebook often argues it is a technology company and not a media company. to take on fake news and 2018, it may have to be the. both. david: that was bloomberg's sarah frier. we talked about geopolitical risk in 2017. what geopolitical risk do we have ahead of us in 2018? this is bloomberg. ♪ ♪ david: i am david westin. this is "bloomberg markets: balance of power." we go over it and chandra. u.k., labour mps are urging counselor philip hammond to publish the treasury analysis of brexit potential impact on the u.k. economy. in a letter, the 25 opposition lawmakers said it is vital that light is shed on the modeling and analysis that the treasury has carried out. and it previously told parliament's treasury committee that his team is preparing for a wide range of potential outcomes, but did not reveal specifics. most of the nearly 200-year-old magnolia tree may have been saved. and a largeuse portion of the historic tree of become a safety risk. melania trump agreed to have it cut after reviewing reports about its condition, but before and after photos show not much of the tree have been taken away. president andrew jackson and the -- added the magnolia in 1835. well neither resigned in the white house, both former president obama and hillary clinton remain the most admired men and women among americans. chosenual gallup poll the former president beating up president trump 17% to 14%. a row that year in mr. obama has topped the list. hillary clinton sits on top of the women's list of the 16th straight year, aging former first lady michelle obama nines -- 9% to 7%. melania trump garnered just 1% of the vote. in spain, the interior ministry is withdrawing thousands of police reinforcements deployed to catalonia in the run-up to october's referendum very after the regional government declared independence, the central government in madrid dismissed the catalan government and dissolved the regional parliaments. liberia's national election commission is expected to begin releasing provisional results from its presidential runoff today. more than 2 million voters went a the polls to choose between former soccer star in the country's vice presidents. he didn't garner enough votes to win outright. the winner will replace the president, who stepped down in january. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm emma chandra. this is bloomberg. david: we spent much of 2017 focusing on geopolitical risk, ranging from the nuclear threat of north korea to a range of potentially destabilizing elections in europe. as we look forward to 2018, we try to anticipate what might be around the corner. faires.me bill it's impossible to know what's coming. faries: north korea would be on top of everyone's list. it's been a tremendous year for ratcheting up tensions, particularly when you look at the progress kim jong-un's regime made in developing icbms and nuclear weapons. that is still president trump's top foreign-policy challenge and it is one that doesn't have a real clear exit point. six weeks from now, the winter olympics begins in south korea and everyone would like to get through that without any additional missile test or reasons to the militaries on alert. david: there's been an awful lot of tough talk on both sides with north korea and president trump. have we seen any overt steps taken by the united states to position ourselves so there could be a shooting war? mr. faries: there's one thing that's been true through much of this crisis in 2017. we haven't seen the militaries either side making big, large-scale deployments to react to future conflict and we certainly haven't seen things like the u.s. trying to pull dependence out of south korea, from its embassy or its military families. those would raise a alarm bells across the region. in have had an increase overflights and at one point, we had three u.s. aircraft carriers in the region, operating jointly. those are the kind of things that might happen, regardless, but given the tensions, it makes you worry that some sort of unexpected incident could happen that would really start a minor or major shooting conflict. david: moving to another area we have heard a lot about. we haven't heard a lot lately about russia and ukraine. how delicate is that situation? if you step back a year ago, i don't think many people would have expected u.s. russian relations to have fallen as far as they have, and that goes whether you are a supporter or opponent of president trump with allin last week, the state department issued new guidance saying they would support more lethal defensive weapons sales to ukraine. we believe that may include javelin antitank missiles, which is something the obama and was never willing to do. this is definitely an escalation in this conflict, and it really shows how far relations have tumbled over the last year if you look at the election meddling accusations, the disagreement over the war in syria, and continuing festering issue and ukraine. minute back ine venezuela, which seems to be almost a lost cause. it goes from bad to worse. what's likely to happen? mr. faries: i've been involved in helping cover venezuela from last 10 years in every year, you think it can't possibly get worse when you look at the economic crisis. and yet, it continues to decline. a real test will be case for president maduro and opponents of his regime this year to see whether he can continue to cobble together support to stay in power, or whether the economy implodes and a way that sends refugees fleeing, either into neighboring countries or across the caribbean, trying to get into the united states. david: what will determine the outcome in venezuela? is the army or the military? mr. faries: they certainly played the trump card. at issue has been the opposition for years has been very splintered. live to see a long whether the opposition can really unify behind a single person or a single movement. that really hasn't happened to the degree people think. certainly, the military has all the cards and can can determine whether maduro stays or leaves today. they have that power. ries.: bill fa worrying aboutar brexit and we are ending the year still worried about brexit. we talk with a foreign minister, david miliband. ♪ david: this is "bloomberg markets: balance of power." i'm david westin. time now for the stock of the hour. technology company and wrist -- and are just -- it's wireless devices are charged at a difference -- at a distance. it's exciting. up,led watt's and you can charge your device up to three feet away. 77% of the world has a wireless device, so there's no problem there. they are the exclusive provider for the jets and they will be providing the chips. it was important for them to have dialog as a partner. lowerk they are trading on the issue with apple and dialog is in training on the energous news. viacan charge your device contact and you can also set your phone away in charge multiple devices at once. when he gets to 100%, it stops charging. david: this is first quarter 2018. how much is the market priced in? of the it starts out first quarter and the company is expecting growth along with that. in the first quarter, 2018, 1 .5% growth year-over-year. that would be largest rate of growth coming back from the third quarter of 2015. in the firsta good move for then the leader devices will be rolled out later 2018. they are not profitable yet, they are working on getting there. the company says they will require some additional capital to fund the rollout, but they have some financing partners and at least the top line revenue numbers look good. david: i hope every time you come on is exciting. i'm a little worried. thanks to taylor riggs. it's been a year of high drama and more than a little farce in the cognitive process of extracting great britain from the european union. we recently talked with the head of the international rescue committee and former u.k. foreign minister david miliband about why the budget negotiations have seems so fiendishly difficult and the role the migration mayo laid in leading to where we are now. mr. miliband: two things are going on. there are two negotiations. when negotiations between britain and the rest of europe and the other is within the governing conservative party. you have got people who want to crash out of the european union tomorrow and others who are very concerned that the more pride mechanic and -- pragmatic and of the party that are concerned about the results. you tie the refugee crisis into the brexit vote come into the pushback we've seen that angela merkel has gotten in germany, the recent austrian vote that elected so very right wing members to their leadership. there's nod: question that the migration pressure in europe has been a real factor to stabilizing european politics. the failure to ensure the people in jordan and lebanon were properly cared for meant one million of them came to europe in 2015, 2016. the british case is different in that the main issue in the referendum was not refugees coming from outside europe, it was european citizens, ontarians, romanians, coming to britain within the european union. there was a migration issue, not a refugee issue. both of them point to a single issue, and it's an issue in the u.s. as well -- how can you give middle-class families a chance to give their children chance to get on a postindustrial economy is 80% services in an economy where old industries are dying and new ones are not creating the jobs in the kind of fashion that happened before. david: you use a critical word in saying a pragmatic approach to brexit. as you look at the labour party, is there pragmatism? on the brexit issue, labor is being uber pragmatic. they are persuading remainders and levers that they are on their side. mr. corbyn, the leader of the labour party is seen as a dogmatist, and in some ways -- let's not get into that. on the brexit issue, and historically, he is not a fan of the european union, but he's being pretty pragmatic area i think the danger for the u.k. is that all of our options narrow post-brexit. tax and spending options, economic options, regulatory options, political options in the social options. the argument that we lost in the referendum campaign, and there's an air of inevitability about brexit, i will say one thing. economics is going be very challenging next year. we've been living off the investment decisions made before june 2016. in 2018, we start living with the investment decisions or lack of them made after the referendum in june 2016, and that will color the decision of the house of commons has to take next october november about whether to go through with this withdrawal deal. from the outside, it seems like the degree of disagreement g, andtening -- widenin within the u.k. itself, people who are the remainders and those who want to leave. i'm just wondering if that's accurate, and what do you think could be done? mr. miliband: i don't think of the divide is deepening, but the consequences of the decision are becoming clearer, and that is making stark the teedo futures that britain has -- the two features that britain has. the government interpreted brexit in the hardest way, you reported on the trauma or the tragedy that is confronting northern ireland, which is does itsave to choose between links to the u.k. edits links to the republic of ireland. i think you are seeing the consequences of the brexit decision come through in the hard brexit that its links to the u.k. edits mrs. mas chosen in order to keep her party together. milibandat was david and former u.k. foreign minister. to take us through what comes next in the rise of negotiations, we welcome floppy aross the jackson -- fluffy -- flavia. what comes next in the negotiation? a -->> we just wrapped up phase o, which is the tricky part. shelved,ireland got and the right of citizens living in these countries was resolved as well. and now comes the next bit, which is about trade. that's what the u.k. is really interested in. this is where things get really into the weeds. lose part of the public. it's a very big decision for u.k., because they want to keep financial services. david: what is the practical deadline to get something agreed to if they are going to get it ratified when it needs to be ratified? don't they have a fairly short time horizon? via: the european union says we're going to do this transition and the u.k. is going to keep the rules as is for another two years. so the businesses can adjust. and they will for all intents and purposes still be part of the european union. this, the u.k.f can reach a trade deal and technically, the u.k. leave is march 31, 2019. within that timeframe, they will get the best possible trade deal imaginable. they use says you guys are kind of dreaming. you can actually get what you want. and that's where the real drama comes in. talk about the negotiation within the u.k. itself. to what extent has theresa may really got her cabinet and her party behind her? it seems like it is really hurting talk about the negotiation within the u.k. itself. g cats. a: it is still really divided and theresa may is writing battles internally. -- fighting battles internally. she soften the edges of the hard brexit. i think that is a key takeaway. david: has she made a deal that's going to be hard to deliver on on the northern island question? it seems like she committed to make sure whatever trade relations there are are consistent with what they already had in the eu and it's the only way to abort -- avoid the border. the northern ireland question has been kicked down the road, and it's an issue that could bite everyone in the bottom. at the end of the day, it's not feasible. they agreed to two things that are essentially on reconcilable. david: what are the risks that theresa may is not the prime minister of the time this all gets done? there are repeated rumors that her government could fall. she has this narrow coalition with northern ireland flavia:. , the bet wasago that she would not last past christmas and now they're talking about her planning another election. there's a paradox around her. she's very weak, yet her weaknesses are strength. she could be gone in three months or she could last. it's a tricky part, no one really wants to deal with brexit and it's been what she's done. she got the country through the first stage. the european union doesn't -- there are all sorts of reasons why, and a certain way, she could last a lot longer. david: over the weekend, she says she wants to be known for something more than brexit. who could blame her. >? candid and the winner when it comes to president trump to curtail -- is canada the winner when it comes to president trump's attempts to curtail immigration? live from new york, this is bloomberg. ♪ david: this is "bloomberg markets: balance of power." i'm david westin. as president donald trump moves to crack down on immigration to the united states, prime minister justin trudeau's strategy is taking off. canada brought in 2000 skilled workers in three months and the nation's pouring hundreds of millions of dollars and support for artificial intelligence in the country's tech hubs. is lily.ow to discuss was this conscious on a prime minister's part to step into the void created by u.s. policy? believe he would be painting this with a mirror is rush but there's a subtext that bears mentioning. canada enacted the global skills strategy. attract those in the tech industry. the promise was if you get your application and how they will give you an answer in as little as two weeks. we got some interesting data from canada's immigration agency which shows in the first 3.5 months, canada attracted 2000 workers through this program and diving deeper into those -- into who those immigrants are, it's computer programmers, system analyst, and software engineers. the bulk of these folks come from india, which is interesting. when you look at the h-1b visa program, the backbone of silicon valley, the vast majority of go toraces, 65% or 70% indian nationals. you have a pool of workers that is very much in demand, well you have two very different a virgin policies on immigration playing out, trump versus trudeau. david: i want to put back of the bar chart which illustrates the india and china and places where people come from. india is way off the charts but china is the number two. --h these people coming would these people becoming to the united states under h-1b were it not for president trump and prime minister trudeau's measurements? not only do you reverse the brain drain from canada to the u.s., but you also attract this set of talent, this group of talents that might have otherwise been gunning for a job in silicon valley, perhaps giving places like canada very serious closer look. visayou compare the h-1b program to the global skills strategy, there are some adjusting characteristics. h-1b, there's a lottery system. they cap it at 85,000 visas a year, 20,000 of those are reserved for people with advanced degrees. compare that with the global skills strategy, doesn't apply. application,g there's no cap for now. trump railed against h-1b during the campaign. certainlyd to promised threats of dismantling it. we are seeing some interesting trends. david: much to the consternation of silicon valley. thanks to bloomberg's lily jamali from canada. new year, new tax code. jonathan miller joins us in the next hour to go through how homeowners are gearing up for the changes to the next -- to the tax bill. if you have a terminal, go to tv , you can see our charts and graphics. live from new york, this is bloomberg. ♪ 2:00 p.m. in new york, 11:00 a.m. in san francisco, and 7:00 p.m. in london. julie: i am julie hyman. joe: i am joe weisenthal. welcome to "bloomberg markets." york. we are live in new here at the top stories on the bloomberg and around the world u.s. markets close in a couple hours. we have been watching what has been going on with them. not much movement in today's session, but we are to get what is going on right now. all three major averages trading slightly higher. typicals well below levels for the s&p 500. belowe seen it about 40% the 20-day average. the dow doing the best among a percentage races among the three, but we are not seeing much of a percentage gain at all for the major averages. some gains within technology, specifically the semiconductors.

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